What is the history of ExxonMobil’s business in Cyprus?
ExxonMobil’s 60-year presence in Cyprus primarily covers the supply, distribution and marketing of petroleum products under the Esso and Mobil brands. Our office is located in Nicosia and we have 65 Esso-branded service stations throughout Cyprus, marketing a full range of fuels and lubricant products. Recently, we took an active role with the government of Cyprus to plan for the orderly relocation of our fuels terminal facilities in Larnaca – one of several installations to be moved away from the popular tourist area.
We are committed to improving the lives of the communities in which we operate including the following long-term initiatives in Cyprus:
- Providing free medical tests via a Health Care Mobile Unit which tested 21,000 people for the past eight years.
- Providing 3,750 free baby car seats over the past 10 years to eligible parents to enhance the road safety culture.
- Helping families affected by the economic crisis and contributing to programmes focused on curing cancer and leukemia by donating €200,000 to charitable organizations in 2013 and 2014.
Why is ExxonMobil bidding in the Third Licensing Round for offshore exploration in Cyprus?
As investors, we are always looking for opportunities with strong fundamentals to grow our business. We believe that global long-term demand for oil and gas will remain strong in the decades ahead as populations grow and economies advance.
We would like to expand our presence in Cyprus to include upstream opportunities and look forward to collaborating with the government of Cyprus to explore the country’s hydrocarbon potential to help meet global demand growth. If exploration programmes are successful and material volumes are discovered, ExxonMobil will consider a range of solutions to develop these resources, including liquefied natural gas (LNG) facilities in Cyprus.
That is why we partnered with Qatar Petroleum to submit a bid for offshore Block 10 in the Third Licensing Round. We have worked with Qatar Petroleum since the 1990s to develop the North Field in Qatar – the world’s largest gas field. ExxonMobil participates with Qatar Petroleum in 12 of its 14 LNG trains, and jointly, we developed the world’s largest LNG carriers, as well as three LNG importing terminals – two of which are located in Europe (Italy and the United Kingdom).
What capabilities does ExxonMobil bring to the table that would be used in Cyprus if the bid is successful?
We have highly experienced staff, superior project management capabilities, proprietary innovative technologies including in deep water exploration and gas commercialisation expertise, including a leading position in the liquefied natural gas (LNG) business where we participate throughout the entire value chain – from production to marketing.
LNG projects are large and complex, typically costing tens of billions of euro and posing significant technical and commercial challenges. To be successful, project developers need to have world-class project execution capabilities and a track record for completing such projects safely and in an environmentally sound manner.
With more than 40 years of LNG market and project development experience, ExxonMobil has established itself as an industry leader in the LNG business. Together with our partners, we have interests in more than 70 million tonnes of LNG per year, and developed and reliably delivered LNG to numerous customers around the world. Through its ventures, ExxonMobil has accomplished a number of industry firsts, including the successful commissioning of the largest LNG trains and ships.
Finally, it is important that investing companies have experience developing strong partnerships in the countries where they operate. ExxonMobil has established itself as a strong “partner of choice” to many countries around the world. For instance, in Papua New Guinea, we worked closely with the government and the communities to deliver a world class project that is generating long-term benefits for the country and its people. One key area is the project’s focus on local employment and local services sourcing. More than 9,000 Papua New Guineans were employed in project activities, and we delivered more than two million hours of training.
Why LNG?
ExxonMobil’s Outlook for Energy estimates that nearly half the growth in global gas demand through 2040 is expected to be met through inter-regional trade, most of it using LNG.
By 2040, almost half of the Asia Pacific region’s gas demand is likely to be fulfilled by LNG, up from 35% of total demand today. In Europe, we expect natural gas imports to rise from about 50 percent of total demand today to about 70 percent by 2040. This will require more pipeline and LNG imports. We are also seeing an expansion of new markets and buyers around the globe, in particular in Latin America and Asia.
We are also seeing new types of customers. The International Maritime Organisation emission standards are creating new markets for marine bunkering. Moreover, the opportunities for cost savings and emission mitigations in the land transportation sectors are driving increased demand, particularly in China.
For these reasons, we remain very optimistic about the prospects for LNG.
What is ExxonMobil’s outlook for Cyprus’ role in energy industry development?
As an international oil and gas company that has worked in virtually every major global market, ExxonMobil believes in the importance of maintaining a long-term perspective in the oil and gas industry.
As we seek to expand global supplies of energy, we believe the most effective path to investment and innovation is government and industry cooperation. With sound government policies, our industry can apply new technologies and techniques to unlock oil and gas resources once believed to be too difficult to recover and do it more efficiently and safely. Such long-term strategies will help government, industry, and society each play their part in building a brighter future for all in a growing world.
We certainly believe that Cyprus, with all its offshore upstream opportunities, will work with its energy partners to unlock its oil and gas potential fully and further enhance its strategic role in the Eastern Mediterranean region.
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As we seek to expand global supplies of energy, we believe the most effective path to investment and innovation is government and industry cooperation. With sound government policies, our industry can apply new technologies and techniques to unlock oil and gas resources once believed to be too difficult to recover and do it more efficiently and safely. Such long-term strategies will help government, industry, and society each play their part in building a brighter future for all in a growing world.
We certainly believe that Cyprus, with all its offshore upstream opportunities, will work with its energy partners to unlock its oil and gas potential fully and further enhance its strategic role in the Eastern Mediterranean region.
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